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ch

Switzerland as a location
for financial services
Figures

Key figures on Switzerland as a location for financial services April 2014

1 Economic importance
of the Swiss financial centre
In the past ten years, the contribution of insurance companies to added
value has in-creased by two-thirds, whereas that of banks has more or less
stagnated due to the recent financial crisis.
Table 1
Added value of the financial sector (at current prices), in CHF mn
2003

2008

2013

Financial service activities

33 638

41 121

35 081

Insurance

17 412

23 982

28 325

Total financial intermediaries

51 049

65 103

63 407

11,3

11,5

10,5

Gross domestic product (GDP) Switzerland 450 572

567 852

603 212

Added value as a percentage of GDP

Source: Federal Statistical Office (FSO) / State Secretariat for Economic Affairs (SECO), Annual aggregates of
GDP, production approach.

Share of the nancial centre in GDP (2013)*

Accounting for 10,5%, Switzerland's nancial centre makes a signicant
contribution to GDP. By international standards, this is slightly higher than
in other major nancial centres, but considerably less than in Luxembourg.
25

in %

20

24,7

15
10
10,5

5
0

3,6
Germany

Luxembourg Switzerland

11,4

Singapore

8,6
UK

6,6
USA

* The values for Luxembourg and the United States refer to 2012.
Data: German Federal Statistical Ofce, Statistics Portal Grand Duchy of Luxembourg,
FSO/SECO (Switzerland), Singapore Department of Statistics, Ofce for National Statistics (UK),
Bureau of Economic Analysis (USA).

Key figures on Switzerland as a location for financial services April 2014

The growth in employment was driven primarily by a significant increase in
non-core financial centre jobs.
Table 2
Employment in the financial sector, in full-time equivalents
2003

2008

2013

112 900

123 500

119 400

Insurance

52 400

49 800

49 400

Activities auxiliary to financial services

and insurance activities

25 400

35 300

40 900

190 600

208 700

209 600

6,1

6,2

5,9

3 103 400

3 374 100

3 537 200

Financial service activities, except

insurance and pension funding

Financial sector total

As a percentage of overall
employment
Overall employment
(second and third sector)

Source: FSO, Job Statistics (estimate on the basis of sample surveys), values for the fourth quarter.

Switzerlands financial centre makes a significant contribution to the tax

revenues of the Swiss economy.
Table 3
Financial sector: taxes from individuals and companies, in CHF mn
2006

2008

2010

Taxes from individuals

3 337

4 150

3 596

Taxes from companies

5 918

1 145

2 338

5 057

593

1 251

861

552

1 087

9 255

5 295

5 934

14,1

7,3

8,1

Of which banks
Of which insurance companies
Financial sector total
As a percentage of overall tax revenues
Taxes on income and assets at the level of the
Confederation, the cantons and the communes

65 718 72 106 73 508

Sources: Swiss National Bank (SNB), FSO, Swiss Financial Market Supervisory Authority (FINMA), Federal
Finance Administration (FFA) and Federal Tax Administration (FTA).

Key figures on Switzerland as a location for financial services April 2014

2 International integration
of the Swiss financial centre
The financial sector contributes to Switzerlands current account surplus and
thereby to Switzerlands creditor position in relation to foreign countries.
Table 4
Nominal foreign trade contribution, in CHF bn
2010

2011

2012

14,7

13,4

13,5

4,3

4,3

4,5

Total

19,0

17,6

18,0

As a percentage of Switzerlands
current account surplus

23,2

28,6

27,1

Current account surplus

84,4

52,5

66,3

Net financial service exports (banks)

Net financial service exports
(insurance companies)

Source: SNB, Swiss Balance of Payments 2012.

Swiss foreign direct investment abroad is high by international standards

and a significant part comes from banks and insurance companies.
Table 5
Direct investments of banks and insurance companies abroad,
in CHF bn
2010

2011

2012

76

77

78

Capital stock of insurance companies

abroad

119

132

138

Total

195

209

216

As a percentage of total Swiss capital

stock abroad

19,9

20,0

20,2

Total capital stock abroad

980

1 046

1 071

Capital stock of banks abroad

Source: SNB, Monthly Statistical Bulletin, February 2014, year-end values.

Key figures on Switzerland as a location for financial services April 2014

Bank claims against banks (20032013)
Compared with domestic transactions, cross-border interbank transactions
posted very dynamic growth. The leveraging before the latest nancial
crisis is clearly visible, as is the deleveraging that took place after the
outbreak of the crisis.
1 200

in CHF bn

1 000
800
600
400
200
0

2003

2005

2007

Cross-border interbank transactions

2009

2011

2013

Domestic interbank transactions

Data: SNB. Monthly Bulletin of Banking Statistics, tables 1C and 1E, year-end values.

Key figures on Switzerland as a location for financial services April 2014

3 Banks
There has been consolidation in Switzerlands banking sector over the
past ten years. This structural change is evident particularly in the decline
of 25% each in the number of regional banks and savings banks, as well
as stock exchange banks. Moreover, the presence of banks under foreign
control has increased recently.
Table 6
Number of banks in Switzerland
2002

2007

2012

24

24

24

88

76

66

62

48

47

Foreign-controlled banks

122

122

103

Branches of foreign banks

25

30

28

Private bankers

15

14

13

Other banking institutions

16

13

13

356

330

297

Cantonal banks
Big banks
Regional banks and saving banks
Raiffeisen banks
Stock exchange banks

Total
Source: SNB, Banks in Switzerland.

Key figures on Switzerland as a location for financial services April 2014

The increase in the countercyclical capital buffer obliges banks to raise the
capital for residential mortgages from 1% to 2% from 30 June 2014. This
should help maintain, or further increase, the resilience of the banking
sector to a correction in the imbalances on the mortgage and real estate
markets.
Table 7
Effective utilisation of the banks credit lines (credit volumes),
in CHF bn
2011

2012

2013

Domestic lending

937

991

1 035

Foreign lending

118

126

144

1 055

1 117

1 179

784

830

865

Total
Of which domestic mortgage claims

Source: SNB, Monthly Bulletin of Banking Statistics, February 2014, year-end values.

The high volume of bank securities holdings reflects the prominent role
of asset and wealth management in the Swiss financial centre.
Table 8
Securities holdings in client bank accounts (domestic and foreign
custody account holders), in CHF bn
2011

2012

2013

1 950

2 188

2 329

Of which private customers

436

465

509

Of which commercial customers

184

216

197

Of which institutional investors

1 330

1 507

1 624

Foreign custody account holders

2 162

2 601

2 768

Of which private customers

546

562

562

Of which commercial customers

105

94

100

1 512

1 945

2 107

4 113

4 788

5 097

Swiss custody account holders

Of which institutional investors

Total

Source: SNB, Monthly Statistical Bulletin, February 2014, year-end values.

Key figures on Switzerland as a location for financial services April 2014

Share of individual banks in the balance sheet total for banks
in Switzerland (2012)
Although there are almost 300 banking institutions in the country,
Switzerlands banking scene is dominated by the two big banks. This can
be seen, for example, in the fact that the two big banks account for
around half of the entire balance sheet total.
2%
3%
11%

Cantonal banks

3%

Big banks
17%

Regional banks and

savings banks
Raiffeisen banks

5%

Stock exchange banks

6%
4%

Foreign-controlled
banks
49%

Branches of foreign
banks
Private bankers
Other banks

Balance sheet total for all banks:

CHF 2 778 billion
Data: SNB. Banks in Switzerland 2012, page A2.

Key figures on Switzerland as a location for financial services April 2014

4 Insurance companies
and pension funds
The Swiss Financial Market Supervisory Authority (FINMA) supervises
insurance companies in Switzerland. Health insurers are also subject to
FINMA supervision for their supplementary health insurance operations.
Table 9
Number of overseen insurance companies in Switzerland
2002

2007

2012

26

26

23

118

117

123

Reinsurers

21

25

26

Captives

32

46

35

Overseen health insurance funds

(supplementary health insurance)

57

47

16

254

261

223

Life insurers
Non-life insurers

Total

Source: FINMA, Report on the insurance market in 2012; private insurance companies in Switzerland;
annual reports

Consolidation can be observed not only in the banking sector, but also
among pension funds.
Table 10
Number of pension funds in Switzerland
Pension funds
Source: FSO, Occupational Pension Plan Statistics.

2002

2007

2012

3 170

2 543

2 073

Key figures on Switzerland as a location for financial services April 2014

Despite the low interest rate environment at present, fixed-interest securities
have gained importance as an asset class for insurers over the past ten years.
Table 11
Capital investments of Swiss life insurance, non-life insurance
and reinsurance companies by investment category, in CHF bn
2002

2007

2012

Land, buildings

37

37

41

Mortgages

29

27

31

Financial interests

57

51

59

Shares and similar investments

44

56

29

171

251

263

Loans, debt register claims

21

28

18

Other investments

55

59

79

414

511

529

Investment funds, own shares and bonds

Fixed-interest securities

Total assets

Source: FINMA, capital investments of all insurance companies, year-end values

Over the past ten years, collective assets have become considerably more
important in the capital allocation of pension funds.
Table 12
Capital investments of Swiss pension funds by investment
category, in CHF bn
2002

2007

2012

Cash and cash equivalents

41

49

52

Investments with employers

10

11

11

148

224

237

22

17

14

103

168

185

61

88

117

Alternative investments

37

41

Mixed assets

10

Miscellaneous

17

Total assets

417

605

673

73

224

313

Bonds and medium-term notes

Mortgages
Shares
Real estate and land

Of which collective assets

Source: FSO, Occupational Pension Plan Statistics, year-end values.

Key figures on Switzerland as a location for financial services April 2014

Pensions paid out (OPA) and permanent resident population in
Switzerland (20062012)
Demographic change in Switzerland can also be observed in the
relationship between occupational pensions paid out and the permanent
resident population.
9

in 100 000

in mn

2006

2008

Occupational pensions paid out (OPA)

(lhs)

2010

2012

Permanent resident population

(rhs)

Data: FSO. Occupational pension plans in Switzerland, Key pension fund statistics 20062012
(not in English), page 5; STATPOP.

5 Swiss stock exchange

The capitalisation on the Swiss stock exchange (SIX Swiss Exchange) is
approximately twice the amount of Switzerlands GDP.
Table 13
Capitalisation on the SIX Swiss Exchange, in CHF bn
Capitalisation of companies in the
Swiss Performance Index (SPI)

2011

2012

2013

863

973

1 188

Source: SNB, Monthly Statistical Bulletin, February 2014, year-end values.

Key figures on Switzerland as a location for financial services April 2014

Trend of the equity market and its main sectors (20042014)
The effects of the latest nancial crisis can also be seen in the
development of the stock exchange data. Banks have been particularly
hard hit, while insurance companies have moved in line with the overall
market (SPI).
300
250
200
150
100
50
0
2004

2006

2008

2010

Swiss Performance Index (SPI)

Banks

Food and beverages

Health care

2012

2014*

Insurance

Until end of January 2014

Data: SNB. Monthly Statistical Bulletin, table F7 (own indexing).

Capital market developments are determined by various factors. For

example, inflation, exchange rates and interest rates play a key role, as do
expectations in their regard. Aside from market forces, regulatory measures can also have an influence on capital market movements.
Table 14
Net borrowing in the form of publicly issued bonds in Swiss francs
(issues on the SIX Swiss Exchange), in CHF bn
CHF bonds of Swiss borrowers, issuing value
Redemptions of CHF bonds of Swiss borrowers
CHF bonds of foreign borrowers, issuing value
Redemptions of CHF bonds of foreign borrowers
Total net issuing value
Source: SNB, Monthly Statistical Bulletin, February 2014, annual data.

2011

2012

2013

40
25

47
26

47
30

33
47

39
50

21
45

10

-6

Key figures on Switzerland as a location for financial services April 2014

Securities trading is dominated by Swiss shares.
Table 15
Securities turnover on the SIX Swiss Exchange (secondary market),
in CHF bn
2011

2012

2013

Shares

823

587

702

Bonds

85

96

90

Structured products and options

(domestic and foreign)

52

32

30

108

83

98

1 068

798

920

Shares

Bonds

91

91

77

94
1 161

95
893

85
1 004

Swiss securities:

Investment funds (domestic and foreign)

Total
Foreign securities:

Total
Total of foreign and Swiss securities
Source: SNB, Monthly Statistical Bulletin, February 2014, annual data.

Key figures on Switzerland as a location for financial services April 2014

Notes
Changes in the figures reported as compared with earlier editions of this
publication are generally due to revisions and are not reported individually. Rounding differences are also possible.
Additional information on the individual tables can be downloaded at
www.sif.admin.ch.
Address for enquiries:
FDF/SIF
Financial Market Analysis Section
Bundesgasse 3
3003 Bern
maerkte@sif.admin.ch
Phone: +41 31 322 60 52
Fax: +41 31 323 04 22

Imprint:
Published by:
State Secretariat for International Financial Matters SIF
Distribution:
www.bundespublikationen.admin.ch
Art. no. 604.002.1/14Eng
April 2014
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